14 Apr The Role of a Subrogation Management Team in Insurance Claims

A subrogation management team benefits insurance companies and their essential customers in multiple ways. Experienced, well-equipped subrogation specialists help insurers reduce claim costs while promptly servicing claims. To better understand the importance of subrogation management, find out how it works, what its key benefits are, and how today’s technology makes the process more efficient and effective, follow along below: 

What is Subrogation?

Subrogation means substitution.  Insurance subrogation is as an insurance company’s right to pursue payment from a third party for losses, even though the insurer has already paid their customer for the claim. In other words, subrogation lets insurance companies substitute for their clients while pursuing liability claims.

This right lets the insurance company settle a claim with its client and get reimbursed for payment by the at-fault party or that party’s insurance company. The carrier can send bills to at-fault parties or represent its client in court.

Most people associate subrogation with car insurance. However, other types of policies sometimes utilize this process. Examples include property, workers’ compensation, and health insurance. 

The Role of a Subrogation Management Team 

Subrogation management teams assume responsibility for the insurance subrogation process. The team’s duties include the following: 

• Subrogation management begins by identifying opportunities for loss recovery from at-fault parties. 
• The team must investigate the incident, involved parties, and potential financial sources for reimbursement. 
• Subrogation managers need to gather evidence to support the liability claim. 
• The team also takes responsibility for serving as a point of communication to involved parties, insurance companies, and other stakeholders.

Besides these primary functions, subrogation managers track claims as they proceed through different stages of the process. They help negotiate fair settlements and ensure timely payments. Sometimes, subrogation may also offer refunds to the injured party after the initial settlement. This occurs when the subrogation managers can refund deductibles that may have been paid under the terms of their policy.

How Subrogation Management Improves Insurance Claims 

The primary benefits of hiring a subrogation management team include the advantage of partnering with experienced professionals who understand the process. They know how to maximize the value of claims while adhering to regulations and professional best practices. They share the same goals as the insurance company, which include high recoveries and prompt repayments.

Because this team improves recovery efforts, they can substantially lower the cost of claims. These savings help improve bottom lines and can result in reduced customer premiums. Subrogation also lets insurance companies pay their clients promptly for claims, without waiting for court cases to settle. Even though customers may never know a subrogation team exists, the team’s work can improve their experience, maintain customer loyalty, and enhance the insurance company’s reputation. 

The subrogation team also carefully tracks each case to ensure each step in the process gets handled efficiently. Because this team has access to current, detailed information about the status of cases, they can also serve as communication touchpoints for various parties. 

Technology and Subrogation Management 

Subrogation management involves monitoring and managing highly complex processes for multiple claims. Subrogation technology helps teams and their partners work effectively and efficiently by providing real-time access to claims information.

Some information these systems track includes incident reports, evidence establishing liability, negotiations, judicial procedures, and the involved parties. Subrogation management apps can give various stakeholders a real-time view of each case and automate alerts when the status changes.

Even more, advanced subrogation apps offer reporting and analytics, some with built-in AI. These advanced systems can help the team analyze data to better identify subrogation opportunities. Managers can also use these tools to identify trends for making data-driven decisions that can improve safety and subrogation efforts. 

The Benefits of Hiring a Subrogation Team 

Quality subrogation management teams rely on experience, training, and technology to improve claims recovery, work efficiency, and customer satisfaction. They can offer visibility into each stage in a complex process and a central communication hub.

High-tech analytics provides the information that managers need to identify claims and improve business processes. These efforts can result in higher profits, lower costs, and often, lower premiums, advantages sure to attract more business and investments.

 At Fleet Response, our staff of experienced, trained subrogation specialists offers clients a deep understanding of regulations, aggressive pursuit of liability claims, advanced technology, and a commitment to the highest standards. 

Call us at 800.338.0619 or send an email with our online contact form. Tell us about your subrogation management concerns, and we’ll explain how our professional subrogation management services will help.